Australian High Court: ISP not liable for their user’s copyright infringements

The High Court of Australia has spared internet service providers liability for millions of acts of online piracy carried out by their Australian customers. “The Australian” reports that after three years fending the creative sector’s lawyers through legal proceedings, the country's highest federal court found last Friday that Australian ISP iiNet could not be held responsible for the trade of thousands of pirated movies and music files by its customers.

In a unanimous decision, the High Court upheld a finding by the Federal Court of New South Wales in February last year, that iiNet did not authorise its customers to breach copyright online. The High Court dismissed an appeal by a number of film and television companies and confirmed a decision of the Federal Court of Australia.

The High Court said in a summary of the ruling posted on its site today. "The Court observed that iiNet had no direct technical power to prevent its customers from using the BitTorrent system to infringe copyright in the appellants' films. Rather, the extent of iiNet's power to prevent its customers from infringing the appellants' copyright was limited to an indirect power to terminate its contractual relationship with its customers."

The ruling finally gives legal certainty to internet providers around Australia as they feared being exposed to millions of dollars in damages claims by copyright owners unless they took on the daunting task of policing and monitoring their lines.

In an official statement, iiNet chief executive Michael Malone took a conciliatory tone over the outcome by appealing to studios to work with ISPs on legal alternatives for distribution of online content. "Increasing the availability of licensed digital content is the best, most practical approach to meet consumer demand and protect copyright. We have consistently said we are eager to work with the studios to make their very desirable material legitimately available to a waiting customer base -- and that offer remains the same today," Mr Malone said.

In many jurisdictions, ISPs are struggling to decipher their potential liability for online copyright protection. As this landmark litigation was the first of its kind to reach the highest court stage anywhere in the world and therefore attracted international attention of the entertainment and internet sectors alike.

Source: The Australian

Read more on the case of AFACT vs. iiNet on the question of ISP liability on Future of Copyright